Use the following information to answer the next several questions:
Scenario 1: Imagine that an economy produces two goods, flashlights and fishing lures. In 2011, the economy produced 70 flashlights and 40 fishing lures, and the prices of flashlights and fishing lures were $5 and $12, respectively. In 2012, the economy produced 85 flashlights and 50 fishing lures, and the prices of flashlights and fishing lures were $7 and $15, respectively.
-Based on the information in Scenario 1, nominal GDP in 2011 in this economy was

Question

Quizplus · Accepted Answer

Nominal GDP in 2011 is calculated by multiplying the quantity of goods produced by their prices in the same year. For flashlights, it's 70 * $5 = $350. For fishing lures, it's 40 * $12 = $480. Adding these together gives $830.

Use the Following Information to Answer the Next Several Questions